Editorial: Rate breaks are a temporary fix

With a House vote expected as soon as today, the Legislature could finally reach a compromise with Illinois' electricity heavies, Ameren and Commonwealth Edison.

That means millions of customers who've been complaining about rate hikes -- and hearing for months that help was on the way -- could get breaks on their bills. That means Ameren and ComEd, which fought the onerous alternative, a rate freeze, can drop the threats of lawsuits and mass layoffs.

Most important, that means Springfield is buying itself time -- until 2009 -- to decide what to do about its failed foray into deregulation.

Indeed, if this $1 billion compromise earns the governor's signature, lawmakers shouldn't dally. Multiple meetings have gotten them to this point; it will take many more over the next three years to either foster real electricity-distribution competition or put the genie back in the bottle and re-regulate the utilities. Rate breaks are but a bandage across a deeper wound.

Nonetheless, downstate lawmakers should support them, as their constituents stand to gain the most. ComEd parent Exelon is coughing up $800 million to Ameren's $150 million, but both ComEd and Ameren customers are in line for $488 million of relief apiece.

That's a 3-to-1 return for those served by CILCO, CIPS and IP. Ameren Illinois' "typical" customer could get back $130 this year; those with electric-heat homes would average $400. Some $40 million will fund low-income programs, including a limited giveaway of efficient light bulbs and a temporary waiver of Ameren's fee for replacing city street lights (attention, West Peoria Lighting District).

Meanwhile, Illinois' attorney general will drop litigation against Ameren and ComEd over their mysterious "reverse" power-buying auction, as the compromise creates an Illinois Power Agency to negotiate electricity prices with generators. We're not tickled about a new entity which sounds redundant of the Illinois Commerce Commission, to which the IPA will answer. To the extent that state-appointed brokers can stabilize prices, we'll be OK with it.

Republican lawmakers are right that, for some customers, this deal won't produce astounding savings.

We wish Springfield stakeholders had spent more time pressing the utilities than squabbling amongst themselves.

Still, legislators should pass what's in front of them, then set about a long-term solution.